Form 8912: Credit to Holders of Tax Credit Bonds
Published November 7, 2026
Form 8912 is used to claim a credit for holding certain tax credit bonds. These are bonds on which the holder earns a federal tax credit instead of interest, such as clean renewable energy bonds and qualified school construction bonds. The bond issuer reports the credit to the holder on Form 1097-BTC.
This post is general information from the Rev. December 2024 edition of Form 8912 and its instructions. This post does not tell you what to do in your case.
A caution about newer bonds
The form says not to enter any bond credits for bonds issued after 2017. The instructions explain that section 13404 of the Tax Cuts and Jobs Act repealed the older credit bond sections for bonds issued after December 31, 2017. Most people will not need this form for a newer bond. Bonds issued before 2018 may still produce a credit, as the instructions explain. Check the bond's issue date first.
Who gets a Form 1097-BTC
The instructions say that many holders receive a Form 1097-BTC that lists the credit for each bond. You enter those amounts in Part III. If you are claiming a bond credit and did not receive a Form 1097-BTC, you complete Part IV instead. Read the instructions before you use Part IV, because it needs more information about the bond.
A pass-through entity, such as a partnership or S corporation, may report a credit on its own Schedule K and on a Form 1097-BTC. The instructions say to avoid counting the same amount twice.
How the form is organized
- Part I, Current Year Credit, collects the credit from Part III (line 1) and Part IV (line 2). Line 3 is for carryforwards of credits to 2021. Line 4 is the total credit.
- Lines 5 and 6 apply to estates and trusts. Estates and trusts that figure a clean renewable energy bond credit use a different line, as the form explains.
- Part II, Allowable Credit, starts with your regular tax before credits. For an individual, that is the tax on Form 1040, Form 1040-SR, or Form 1040-NR, line 16, plus Schedule 2, line 1z.
- Line 8 adds alternative minimum tax from Form 6251, line 11. Line 9 adds lines 7 and 8.
- Lines 10a through 10e subtract certain credits, such as the foreign tax credit and the general business credit, before you reach net income tax on line 11.
- Line 12 is the credit allowed for the year. It is the smallest of line 4, line 11, or the amount limited by the formula in the instructions.
Where the credit goes
The form says that for an individual, line 12 is reported on Schedule 3 (Form 1040), line 6k. The credit cannot reduce your tax below zero, so it cannot produce a payment to you. The instructions explain how any unused credit may be carried forward.
Credit allowance dates
The instructions say the generally applicable credit allowance dates are March 15, June 15, September 15, and December 15. A holder earns the credit on the allowance dates while holding the bond. The instructions explain how to count the dates for each bond type.
Before you file
- Check the issue date of each bond. The form caution applies to bonds issued after 2017.
- Match each Form 1097-BTC to the Part III lines before you enter the amounts.
- Confirm the figures for regular tax, alternative minimum tax, and other credits from your return.
- Attach the form to your return and keep a copy with your records.
Related posts
For another bond topic that can affect your return, read Bond Premium Amortization: Basic Rules. For reporting interest from bonds and other accounts, read Form 1099-INT and 1099-DIV: Reporting Interest and Dividends.
Sources: Sources: IRS, Form 8912, Credit to Holders of Tax Credit Bonds (Rev. December 2024) (https://www.irs.gov/pub/irs-pdf/f8912.pdf); Instructions for Form 8912 (Rev. December 2024) (https://www.irs.gov/pub/irs-pdf/i8912.pdf) This is general information, not advice about your specific return.
More guides on: Investments, interest and capital gains · Tax credits and deductions
